There's no bricks and mortar but your rights are set in stone

A reform that protects the interests of people buying newly built homes

A brand new property that hasn't been lived in by anyone else is many people's idea of a dream home. Buying off-plan, before the property has even been built, is a popular option – whether it's a converted city centre loft apartment or a detached family home that's part of a new development.

But what if you turn up at the new address with all your possessions, ready to move in, only to find that builders are still laying the kitchen floor and the tiling in the downstairs cloakroom isn't quite finished?

While problems like this are rare, they do happen. However, the risk should be reduced by new regulations from the Council of Mortgage Lenders (CML). From April, banks and building societies will not be allowed to release mortgage funds for a new property unless it has passed a final inspection by a home warranty provider.

Such warranties – issued by the National House Building Council (NHBC), Zurich and Premier Guarantee – are given after a property has been thoroughly inspected and all building work is deemed to be finished.

Calls for reform in this area have come about because some property developers are pressurising buyers to complete a purchase by a certain date. So keen are they to get their hands on the money that some will threaten to fine the buyer if they don't meet a set deadline. At the moment, most lenders don't insist on a final inspection warrant being issued as a prerequisite for funds to be released. This is because, to grant a mortgage offer on a newly built home, the lender will get a valuation when you apply for a mortgage and then have a further valuation carried out once the property is finished.

But Ray Boulger, senior technical manger at mortgage broker Charcol, says this process is often hurried. Many builders don't give much notice, so the final valuation is often done less than a week before completion.

Another result of the last- minute rush is that some sales go through without a home warranty being obtained. Research from the Halifax and the NHBC found that around 10 per cent of new properties do not have a final inspection warranty in place. So if any problems emerge with the property, it could prove difficult to resolve them.

"All new properties have a 10-year guarantee, which is a big safety net for home owners," says Mark Hemingway, a spokesman for the Halifax. "But if the final warranty hasn't been issued, the borrower doesn't have that protection, which can put them in a difficult position if there's still work to be done."

So from April, those buying a brand new home should have much more peace of mind. "[While] a final warranty can't protect against all the little snags that may occur, the real benefit is that people will have more certainty that their new home will be complete," says Neil Jefferson, head of registration at the NHBC.

He adds that up till now, builders have been able to set a completion date stating when the property will be ready. But in future they won't be able to do this, as the sale won't go through until the warranty organisation has deemed the property to be complete. This should also allow for more time between the property being finished and the completion date, which should mean the sale isn't as rushed.

Although there are pitfalls, there are also many advantages to buying off-plan. Nick Freeth, area director for Wessex at Bradford & Bingley estate agents, says the first is that the price is usually set from the time you put down a deposit. So if your new home won't be ready for another 18 months, it could be worth more than you've paid for it by the time you move in.

This is obviously a big benefit when property prices are rising, though you are taking a gamble because they could fall before completion. But even though many people are expecting the property price increases of the past couple of years to slow down dramatically, Mr Freeth says this is no reason to be deterred from buying off-plan. "The market is still very busy, and [particularly] out in the shires people are still confident.

"Things do seem to be balancing out," he adds, "as supply is increasing. The price boom we've seen over the last few years has been largely caused by a shortage of properties for sale, while demand to buy has been high."

Another factor that can create a high demand for off-plan properties is location. If a new development is to be constructed near a good school or reliable transport links, the houses and flats will be snapped up. "If it's a particularly sought-after area where people are scrambling to get a property, buying off-plan is a good way of securing a home," says Mr Freeth.

Buying off-plan will usually give you at least some influence over what's happening inside the property, such as where the power points are positioned and what type of flooring is laid. You may even be able to alter the layout of the interior, specifying such features as whether a dividing wall should be built to create two rooms instead of one.

However, Mr Freeth adds a note of caution for would-be buyers of new homes: "You've got to look at the plans and make sure you understand them," he says. "Most developers will have brochures, but if it's a one-off development and only plans are available, it may be worth taking them to an architect to have them checked over. And remember, if there's a show house, it's not the one you'll be buying. So visit the plot where your property will be built, and check the orientation and where your house will be in relation to those around it."